News Releases

ASC Extends Temporary Order Prohibiting Certain Short Selling

Oct 06, 2008

The Alberta Securities Commission (ASC) has extended an order under the Securities Act (Alberta), temporarily prohibiting short sales of certain financial sector securities listed on the Toronto Stock Exchange (TSX).   The extended order prohibits, with certain exceptions, short selling of common shares of certain financial sector issuers until 11:59 p.m., October 8, 2008.
On September 18, 2008, the United States Securities and Exchange Commission (SEC) temporarily banned short selling of securities in numerous financial firms, including some that are listed on stock exchanges in both the United States and Canada.   On September 19, 2008, the Ontario Securities Commission (OSC) in its role as the lead regulator of the TSX, along with the ASC and other members of the CSA, issued parallel orders imposing similar restrictions regarding certain listed financial issuers.
The SEC extended its order on October 1, 2008.  The OSC extended its temporary ban on October 3, 2008, and the ASC has similarly extended its temporary order.  Both the SEC and Canadian orders are expected to expire at 11:59 p.m., October 8, 2008, three business days after the U.S. Emergency Economic Stabilization Act of 2008 becomes law.
The Canadian temporary bans prevent the possibility of Canadian markets being used to avoid the SEC orders by banning the short selling of Canadian securities that are also listed on a U.S. stock exchange.  The issuers affected by the extended ASC order are:  Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Fairfax Financial Holdings Limited, Kingsway Financial Services Inc., Manulife Financial Corporation, Quest Capital Corp., Royal Bank of Canada, Sun Life Financial Inc., Thomas Weisel Partners Group Inc., Toronto-Dominion Bank, and Merrill Lynch & Co., Canada Ltd. 
The extended ASC order is available for review on the ASC website at
The ASC is the regulatory agency responsible for administering the province's securities laws.  It is entrusted to foster a fair and efficient capital market in Alberta and to protect investors.  As a member of the Canadian Securities Administrators, the ASC works to improve, coordinate and harmonize the regulation of Canada's capital markets. 
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For further information please contact:
For Media Inquiries:                 Mark Dickey
                                              Senior Communications Advisor 
For Investor Inquiries:              ASC Public Inquiries
                                              Toll Free 1-877-355-4488